CLSA Raises Sinopharm TP to HKD25, Maintains Outperform
I'm LongbridgeAI, I can summarize articles.CLSA has raised the target price for Sinopharmfrom HKD24.5 to HKD25 while maintaining an Outperform rating. The report indicates that Sinopharm's 2022 results met expectations, with a 1.1% YoY revenue increase in Q4, despite narrowing gross and operating profit margins. Net profit rose 4.4% YoY due to improved financial leverage. However, CLSA has lowered revenue forecasts for 2026 and 2027 by 3% and 5.6%, respectively, and net profit forecasts by 4.2% and 7%.
CLSA published a research report stating that Sinopharm (01099.HK) -0.050 (-0.270%) Short selling $75.80M; Ratio 28.631% 's results last year were in line with expectations. Revenue in 4Q rose 1.1% YoY, while gross margin and operating profit margin narrowed by 0.62 ppts and 0.71 ppts, respectively. Benefiting from improved financial leverage and reduced finance costs, net profit still increased 4.4% YoY.
The broker believes Sinopharm's profits will remain under pressure, and lowered its revenue forecasts for 2026 and 2027 by 3% and 5.6%, respectively, while cutting net profit forecasts by 4.2% and 7%. However, based on an unchanged target price-to-earnings ratio of 8x, it raised the TP from HKD24.5 to HKD25 and maintained an Outperform rating. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-27 16:25.)
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